Bonus paid to new partners: In the admission of new partner, when the new partner brings something valuable assets like special skills, customers or technical know-how in the partnership , the existing partner pay some amount of bonus to the new partner. To determine: If a bonus is paid to a new partner upon admission into the partnership, what is the effect on the existing partner’s capital accounts?

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Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 12, Problem 13RQ

To determine

Bonus paid to new partners:

In the admission of new partner, when the new partner brings something valuable assets like special skills, customers or technical know-how in the partnership, the existing partner pay some amount of bonus to the new partner.

To determine:

If a bonus is paid to a new partner upon admission into the partnership, what is the effect on the existing partner’s capital accounts?

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Use the information provided to answer following question Larry Ltd. is a registered VAT taxpayer. His business transactions for the months of January to March are included below. The VAT rate is 12.5%. All the amounts given are VAT inclusive. Months Sales Purchases Imports January $50,625 $30,375 $17,662.50 February $63,337.50 $38,475 $25,087.50 March $67,500 $52,312.50 $22,612.50 What is the Larry Ltd. VAT input tax for the 3 months period? A.$7,262.50 B.$13,462.50 C.$20,725 D.$20,162.50

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Answer 2

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Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 12, Problem 13RQ

To determine

Bonus paid to new partners:

In the admission of new partner, when the new partner brings something valuable assets like special skills, customers or technical know-how in the partnership, the existing partner pay some amount of bonus to the new partner.

To determine:

If a bonus is paid to a new partner upon admission into the partnership, what is the effect on the existing partner’s capital accounts?

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 12, Problem 13RQ

To determine

Bonus paid to new partners:

In the admission of new partner, when the new partner brings something valuable assets like special skills, customers or technical know-how in the partnership, the existing partner pay some amount of bonus to the new partner.

To determine:

If a bonus is paid to a new partner upon admission into the partnership, what is the effect on the existing partner’s capital accounts?

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 12, Problem 13RQ

To determine